Trump Tariffs Trigger $577M Crypto Liquidation Crisis

• Trump imposed tariffs on 60+ countries ranging from 10% to 50%, effective August 7, with Canada facing 35% rates. 

• The crypto market crashed, liquidating $577 million in long positions, hitting Ethereum hardest at $168.9 million. 

• Southeast Asian countries face the steepest tariff rates, with Syria at 41% and Myanmar at 40%.

President Donald Trump’s sweeping tariff announcements have sent shockwaves through the cryptocurrency market, triggering massive liquidations and widespread investor panic. The Trump administration announced new tariffs on more than 60 countries, ranging from 10% to 50%, effective August 7, according to the latest New York Times report.

Countries with a trade surplus will face a 10% universal tariff, while nations with trade deficits will encounter minimum tariffs of 15%. Canada faces significantly higher tariffs of 35% on certain exports starting August 1, though goods under the USMCA agreement remain exempt. These exempt goods represent the majority of US imports from Canada.

Southeast Asia Bears Heaviest Tariff Burden

Southeast Asian countries face some of the steepest tariff rates under Trump’s new policy. Syria tops the list with 41% tariffs, followed by Laos and Myanmar at 40%. Cambodia, Vietnam, Indonesia, Malaysia, and Thailand face substantially reduced but still elevated rates of 19% to 20%.

New Zealand’s trade minister, Tom McClay, criticized the 15% tariff rate imposed on his country, calling it unwarranted compared to Australia’s 10% levy. Pakistan emerged as a beneficiary, seeing its tariff rate slashed from 29% to 19%. Pakistan’s Finance Minister highlighted the deal as “the beginning of a new era of economic collaboration” in energy, mining, IT, and cryptocurrency.

Crypto Market Suffers $577M Long Position Massacre

The tariff announcement sparked chaos in cryptocurrency markets, liquidating $577 million in long positions within 24 hours. An additional $13 million was wiped out in just the last four hours of trading, demonstrating the severity of the market downturn.

Ethereum bore the brunt of the liquidation crisis, losing $168.9 million in long positions. Bitcoin followed closely with $144 million in liquidated long positions. The massive sell-off reflects growing inflation concerns and market volatility as the trade war escalates globally.

Trade ministers worldwide have reacted intensely to the complex web of tariff rates. The ongoing negotiations with China and Mexico add uncertainty to a volatile situation. Market participants remain on edge as the full impact of Trump’s tariff strategy unfolds across global financial markets.